Honda Brio Launched in Thailand

Below is Honda's first attempt to capitalize on the Thai government Eco-Car initiative; the Honda Brio.

Some background on the Thailand Eco-Car Initiative:
1. Under the purview of Thailand's BoI (Board of Investment)
2. Objective is to move Thailand's automotive industry up the value chain, to diversify away from its current truck platform; one-tonne pick-ups and PPV (passenger pick-up vehicle) SUVs, in line with increasing demand for fuel efficient cars.
2. Corporate income tax exemption of 8 years, regardless of the projects location in the country.
3. Duty-free importation of machinery.
4. Additional offer by Thai Ministry of Finance - 17% excise tax rate on eco-cars that have engines smaller than 1,300cc for petrol engines and 1,400cc for diesel engines (current excise tax rate is between 30%-50% for normal passenger cars).

Requirements to qualify for Eco-Car incentives :
1. Minimum investment value of approximately US$ 144 million
2. Actual production capacity must not less than 100,000 units per year from the fifth year of the projects operation.
3. Fuel economy rating of not over 5 litres per 100 kilometers (unspecified test methodology) or 20km per liter.
4. Comply to at least EU4 emission standard with CO2 emission below 120g/km.
5. Comply to UNECE Reg. 94 and Reg. 95 frontal and side impact crash safety standards.

Current models in Thailand that qualify for Eco-Car incentive : Nissan March. Proton Savvy qualifies in terms fuel economy, emission and crash safety, but not in terms of its country of origin (imported from Malaysia).

TV commercial for Honda Brio.




To cut cost, the Honda Brio doesn't really have a tailgate in a conventional sense. The tailgate is actually a one-piece glass which doubles as tailgate as well as rear windscreen, lifted by only a single strut. Which isn't really an issue considering the light weight of a small rear windscreen.

Rear seats fold but, only as one piece with no split folding.


The vital stats :
Price :
S Manual - 399,900 THB
V Manual - 469,500 THB
V Automatic (CVT) - 508,500 THB.

Engine : 1.2-liter 4-cylinder i-VTEC
Power : 90 bhp power @6,000rpm, 110Nm torque @ 4,800 rpm
Transmission : 5-speed manual / CVT automatic
Fuel economy : 5 liters/100km
Emission standard compliance : EU4
Passive safety standard compliance : UN Economic Commission for Europe (UNECE)’s regulations 94 and 95, front and side impact & Honda's G-CON.
Dimensions (length x width x height) : 3,610×1,680×1,485 mm
Wheelbase : 2345mm

Annual sales target (Thailand) : 40,000 units
This is double that of 20,000 units that Nissan targets for the March in Thailand.

In comparison, Nissan's March produces 79bhp power @ 6,000 rpm and 106Nm torque @ 4,400 rpm. However the March is a larger car, at 170mm longer externally, with 105mm longer wheelbase, 30mm taller. The March however is however a tad more narrow (15mm less).

On the price tag, the Nissan's March starts at 375,000 THB (1.2S MT), or about 6% cheaper, but loses out on main specs items like ABS (standard item on the Brio). The top of the range March 1.2 VL CVT Automatic is priced at 537,000 THB or about 6% more expensive than the top of the line Brio 1.2V CVT Automatic.



The figures above however are of little value to readers outside of Thailand in countries where the March is not available. So for comparison sake, the cheapest Thai market Honda Brio is 25% cheaper than the lowest specs Thai market Honda City S MT, which is not available outside of Thailand (and I think Philippines). So to bring it further up the variant hierarchy, the cheapest Brio is 35% cheaper than the mid-range Thai specs Honda City V AT. If you would do a direct currency conversion, then the Brio is about the price (RM 40,000) of Perodua Viva in Malaysia. Bummer.

Will we see the Brio here? We think it is unlikely in the near future. With the dominance and IAF rebates enjoyed by Perodua and Proton, non-national makes in the sub-1500cc hatchback category can hardly justify a strong business case. Just look at Suzuki's Alto, Kia Picanto and Hyundai i10. However, if it can be justified that consumers can accept paying an acceptable price premium (to Honda Malaysia's bottom line ) for the Honda badge, then it is a possibility in the near future, but not in the short term. To export these cars cheaply via ASEAN-FTA (AFTA), there has to be at least 40% ASEAN sourced content. Honda have mentioned that there are plans to export the Brio to the region, but stop short of saying which country.

Presently, Thailand supplies the March for the entire Asia-Ocenia region (except for China but including Japan). Malaysia of course is not on the list, due to the reasons mentioned earlier. 70,000 units of March are exported from Thailand each year, almost half of the 150,000 vehicles that Nissan Thailand annual export volume.